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Back Opinion The buck stops here

The buck stops here

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HARRY S. Truman, the 33rd president of the United States, used to have a sign on his desk that said: “The Buck Stops Here.” He didn’t originate the phrase, but he popularized it as a means of accepting full responsibility, of saying whatever happens, I’m the top guy, the one in charge, the one to blame if things do not go well.

Here on Guam, the buck appears to stop at the bench of the federal court. Once again, a federal judge has taken away the ability of the elected leadership to administer an important part of the government of Guam. We’re talking about income tax refunds.

We’ve had the Department of Mental Health and Substance Abuse – to be returned to local management by action yesterday of the same judge – and the Solid Waste Division of the Department of Public Works taken from our local administration by federal court order. Now we have a federalized function of the Department of Revenue and Taxation.

The headline said it all: Taxpayers win refund lawsuit! Visiting Judge Consuelo Marshall ruled Tuesday in a class action income tax refund lawsuit against the executive branch and the Attorney General of Guam. She found in favor of fair and timely payment of tax refunds to the people of Guam.

The ruling will be formalized in a permanent injunction next month, requiring GovGuam to return to taxpayers overpayments within a specified period of time, probably six months. The Department of Revenue and Taxation will no longer be able to prioritize refunds, or hold onto them for a year or more. The money will have to be taken out of cash flow and returned, which ironically is what the government should do anyway, and which the judge has affirmed.

So we have another GovGuam function taken out of our elected officials’ hands by court order. We’re trending toward government by injunction, which is what happens when the elected administration lacks the political will or ability to get things done, and somebody must go to court to force an issue. It’s an indictment of the political and policy-making processes of our locally-elected government.

The ultimate, of course, would be a declaration of bankruptcy. We may be headed that way unless the current administration can get a handle on deficit spending and borrowing for operational needs, such as tax refunds.

Comments  

 
-1 #3 Phil 2012-08-24 04:23
@john smith

The U.S. government can't figure out how to do that for themselves. What makes you think they can or would do it for Guam?
 
 
+1 #2 john smith 2012-08-23 15:46
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I seem to remember that the federal gubbermint took over the U.S. Virgin Islands when they were Trillions in debt. Put in place sound fiscal policies and got them on a sound financial footing ? Perhaps I am wrong here.

If the feds can do it for USVI, then then can do it for Guam.

Once on a sound financial basis, we implement the Hay study, borrow to pay for it, give Hessler House a raise, borrow to pay for it, pay Guam Retirement Fund obligations, borroe to pay for it,

Fix GMH past due vendors, borrow to pay for it, Repair the schools and increase teachers and administrators to Calif levels and borrow to pay for it.....

the list goes on and on .....




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+5 #1 Dave 2012-08-23 11:04
I don't believe bankruptcy is an option for the territories. Cities, yes -- states and territories, no. A federal takeover and realignment under an appointed management entity is more likely, akin to what happened in D.C. a few years ago. As noted in the editorial, it appears that the only way GovGuam eventually does things right is under federal mandate. It's a shame it has to be that way but it results directly from Guam's inbred social and political culture.
 

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